HOUSING General Plan Update
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1 HOUSING General Plan Update June 21, 2016 Citizens Advisory Committee Meeting #13 Kaua i County Planning Department Meeting Objectives Your Input and Ideas regarding: How we can meet housing demand through more affordable housing creation over the next years? This discussion will help shape the General Plan s Housing and Land Use Policy and the Future Land Use Map. 1
2 Project Overview 5. Draft General Plan & Public Review 4. Integrating Elements, Growth Strategy, and Implementation 6. Final General Plan & Approval 3. Vision, Goals, & Policy Development 2. Public Outreach 1. Baseline Information and References 3 Presentation Overview 1. Housing Today: Is there a crisis? (Guest Speaker: Steve Hunt, Real Property) 2. The Path we re on: Supply and Demand (Guest Speaker: Kanani Fu, Housing Agency) 3. What can the General Plan can do? Land Use Map and Policy (Guest Speaker: Nancy Kanna, Board of Realtors) 2
3 Poll 1: What do you believe? All Kaua i residents deserve a home to live in and their housing costs should not exceed more than 1/3 of household income. 1. Yes 2. No Poll 2: Your Housing Situation What is your housing situation? 1. Homeowner, 5+ years 2. New homeowner 3. Renter, seeking homeownership 4. Renter, happy to rent 5. Renter, at risk of homelessness 6. Homeless 7. Live with family/friends, rent free 3
4 Housing Today: Is there a crisis? Housing Snapshot (ACS 2014) 30,000 units 22,500 units OCCUPIED 7,500 units VACANT or SEASONAL 14,046 units Owner Occupied 8,349 units Rental 4
5 Housing Snapshot (ACS 2014) Households w/ mortgages Household renting 44% all households cost burdened Housing and Transportation Costs Kaua'i County Median Income Average Cost % Income Housing $15,969 25% Transportation $63,317 $17,096 27% H & T $33,064 52% 5
6 Housing Snapshot (ACS 2014) Single Family Detached 21, units in structure 9,000 R 1 to R 6 R 10 to R 20 6,443 acres 85% 1,165 acres 15% Housing Snapshot (ACS 2014) Year Home Built ,245 7,140 6, , Before s 1980s 1990s 2000s Year Home Built 6
7 Where we live Where we ve been growing ( ) 7
8 Who s Buying? Is this a crisis? 8
9 Poll 3: Does Kaua i have an affordable housing crisis? 1. Yes, urgent action is needed. 2. Yes, but that s the reality of living here and we should accept it. 3. No, crisis is overstating it. 4. I need more information. Steve Hunt Kaua i County Tax Manager Division of Real Property 9
10 Kaua i s Housing Crisis: Why we re in it and the obstacles we re facing in trying to get out of it Economic Forces: Demand is there for more low and moderately priced housing units; however there is definitely an affordability gap between the price points that begin to make sense to developers and what local buyers can actually afford to pay. Off island buyers can afford to pay more and they are doing just that. Profit margins relative to developer s risk simply don t support developing low priced housing when land and utility costs are so disproportionately high, thus developers are building higher priced inventory that have greater profit margins and reduced risk. Cost effective, multi family units tend to have less appeal to local families, as well as lower profit margins and higher risk to developers. Technology has facilitated short term renting by allowing this more profitable use to stay under the radar (VBRO, Air BnB, Flipkey, etc.). Steve Hunt, Kaua i Division of Real Property Kaua i s Housing Crisis: Why we re in it and the obstacles we re facing in trying to get out of it Government Regulations: Requiring a high percentage of affordable housing inventory for rezoning has been such a disincentive that the private sector has not actively participated in upzoning, which in turn has suppressed residential development. Permitting is a lengthy process with no certainty for success, leaving would be developers leery about starting new projects that could miss the market if any red tape were to prolong the project. There are no clearly defined development costs for offsite improvements, especially for traffic mitigation, housing exactions, and infrastructure improvements. These upfront costs can be a barrier to development. Decades of lax enforcement on vacation rentals and homestays outside the VDA have diverted significant portion of the residential housing stock to what appears to be a much more lucrative transient accommodation use. Steve Hunt, Kaua i Division of Real Property 10
11 The Path we re on: Supply and Demand Increasing Housing Supply 1. Additions to the Housing Inventory What government is doing What s happening in the private sector 2. Projected Housing Demand 3. Understanding the gap and what a status quo scenario looks like. 11
12 Kanani Fu Kaua i County Housing Director Achieving the Needed Supply Partnerships Leverage Opportunity Policy Kanani Fu, Kaua i Housing 24 Agency 12
13 New Inventory Added Since 2011 Project Units Pa'anau Phase II 50 Kaniko'o Phase I 60 Kolopua 44 'Ele'ele 'Iluna Phase I 18 TOTAL COMPLETED 172 Kanani Fu, Kaua i Housing 25 Agency Future Inventory in Progress Project Units Kaniko'o Phase II 30 'Ele'ele 'Iluna Phase II, A 48 'Ele'ele 'Iluna Phase II, B 59 Kohea Loa, Ho'oluana 32 Koa'e Workforce Housing 136 Lima Ola, Phase Pi ilani Mai Ke Kai (DHHL) 73 Future Solutions: Explore establishing a County Fund for affordable housing and community development Amend the Housing Policy to encourage development and eliminate barriers Establish a Community Land Trust TOTAL 528 Kanani Fu, Kaua i Housing 26 Agency 13
14 Projected Housing Demand 45,000 40,000 35,000 30,000 30,421 39,676 9,000 units 25,000 20,000 15,000 10,000 5, County of Kaua i, Total Units Active Residential Projects Entitled Residential Projects Agricultural Community Kulana Agricultural Subdivision 172 Residential Community Waiola Residential Subdivision 196 Kohea Loa Residential Subdivision 444 Kukui ula Residential Subdivision 750 Koamalu Multifamily Project 220 The Village at Kōloa Town Multifamily Project 30 Kōloa Camp Residential Subdivision 50 TOTAL 1,690 Potential Private Sector Residential Projects Master Planned with Zoning, needs subdivision *Estimated Grove Farm Līhu'e Residential and Multifamily 1,400 Master Planned with GP, needs entitlements Hokua Place Residential and Multifamily 750 TOTAL 2,150 14
15 2035 DEMAND *SUPPLY 9,000 units 4,500 units *Active residential projects with full entitlements, zoning + master plan, or General Plan + master plan Build-Out Scenario 15
16 Build-Out Scenario What can the General Plan do? Influencing the Private Sector through policy 16
17 The General Plan can 1. Plan to increase housing supply and direct where housing goes 2. State what types of housing and communities we want and need 3. State how the County should encourage public and private housing creation Zoning and Subdivision Code Updates Zoning in all counties shall be accomplished within the framework of a long range, comprehensive general plan prepared to guide the overall future development of the county. 17
18 Nancy Kanna Kaua i Board of Realtors What does it take for the private sector to produce housing? 1.LOTS of Money OR 2.LOTS of Creativity OR 3.LOTS of Money AND LOTS of Creativity Nancy Kanna, Kaua i Board of Realtors 18
19 New Directions Public/Private Partnerships A Lessening of Restrictions Creative Financing Options A Shift in the general public s perception of what housing should be Nancy Kanna, Kaua i Board of Realtors New Directions Hawaii Real Estate Analyst Ricky Cassiday: Consider the benefits of working together and that this will allow for the creation of housing developments that mix public and private housing units, mix rental and For Sale units, mix fee simple and leasehold units. The Result? More housing; safe environments, a more productive and happier community and a broader tax base. Nancy Kanna, Kaua i Board of Realtors 19
20 SUMMARY & DISCUSSION QUESTIONS 1. How can the private sector produce more affordable housing types (not high end)? 2. Where should we encourage new housing through county incentives? Which incentives could we use? 3. Should denser infill development be prioritized, even if it changes the scale of existing towns? 4. How should we meet housing demand through new (greenfield) communities? In siting and developing new communities, what should be considered? 5. What new trends must be considered in housing creation? June 21, 2016 General Plan CAC Meeting Sources: American Community Survey (2014) General Plan Technical Study: Land Use Analysis and Buildout (2015) H+T Affordability Index Residential Home Sales in Hawai i ales_in_hawaii_nov2015.pdf 20
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